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THE MINISTRY OF INDUSTRY

THE MINISTRY OF INDUSTRY

CIRCULAR No.10-TT/DCKS OF SEPTEMBER 13, 1997 GUIDING THE PROCEDURES FOR SUBMITTING THE EVALUATION AND RATIFICATION OF PLANS AND REPORTS IN MINERAL ACTIVITIES AND THE ELABORATION OF MINERAL SURVEY OR PROSPECTION PLANS

In furtherance of the Law on Minerals of March 20, 1996 and Decree No.68-CP of November 1st, 1996 of the Government detailing the implementation of the Law on Minerals, on January 28, 1997 the Minister of Industry signed Decision No.190-QD/TCCB on the establishment of the Council for Evaluation of Plans and Reports in Mineral Activities.

The Evaluation Council is a consulting agency to assist the Minister of Industry in evaluating mineral survey or prospection plans which shall serve as a basis for the Minister of Industry to decide whether to issue permits for mineral survey or mineral prospection or not; evaluating reports on the results of prospection of minerals as common building materials; and evaluating reports on the results of mineral prospection that will not lead to the exploitation feasibility study or in case the prospection permit expires ahead of time.

In order to carry out the evaluation in accordance with stipulations, this Circular provides the following detailed guidances on the procedures of submitting the mineral activity plans and reports for evaluation and ratification and on the elaboration of mineral survey or prospection plans as follows:

I. PROCEDURES FOR SUBMITTING THE MINERAL SURVEY OR PROSPECTION PLANS AND REPORTS FOR EVALUATION AND RATIFICATION

1. Mineral survey or prospection plans submitted for ratification or evaluation before being granted mineral survey or prospection permits must be drawn up in accordance with the provisions of Section II of this Circular, affixed with the signature of the plan elaborator, signature and seal of the organization or individual that applies for the mineral survey or prospection permit. The Council shall evaluate a mineral survey or prospection plan only after receiving the full and valid dossier on survey or prospection as prescribed in the "Regulation on administrative procedures on permits for mineral activities" issued by the Minister of Industry together with Decision No.325-QD/DCKS of February 26, 1997.

2. When the reports on the results of prospection of minerals as common building materials, reports on gem survey and reports on the results of mineral prospection funded by foreign investment capital are submitted to the Evaluation Council, they must be attached with the following papers:

- An official dispatch requesting the evaluation and ratification of the report on the mineral survey or prospection results of the organization or individual allowed to conduct the survey or prospection.

- Three written reports, including the original one attached with full appendice, drawings and primary documents (including data on the project's coordinates and on the results of analysis of mineral samples of different types...)

The original report and the attached dossier must be affixed with the signature of its writer, signature and seal of the organization or individual that has been granted the mineral prospection permit.

- A summary of the above-said report.

- After their evaluation, the primary documents shall be returned to the organization or individual that has been granted mineral prospection permit so that the latter includes them into the geological dossier to be submitted to the Geological Archives according to the regulation on the submission and supply of geological and mineral documents issued together with Decision No.127/QD-DCKS of January 16, 1997 of the Minister of Industry.

3. In case the Council deems it necessary to conduct a field inspection, the organization or individual that submits the plan or report for evaluation and ratification shall have to coordinate with and create necessary conditions for the Council at the latter's request.

4. When defending their plan or report before the Council, the organization or individual that submits such plan or report for evaluation or ratification must be present; in their absence, they shall have to delegate power their representative(s) in writing.

II. CONTENTS OF MINERAL SURVEY OR PROSPECTION PLANS

The structure and basic chapters and clauses of a mineral survey or prospection plan are prescribed in details in the enclosed appendix. The contents of each chapter and clause must be specified according to the geological conditions of each specific area applied for survey or prospection.

III. ORGANIZATION OF IMPLEMENTATION

This Circular takes effect 15 days after its signing applicable in an uniform way nationwide to all domestic and foreign organizations and individuals engaged in mineral activities.

The Vietnam Geological and Mineral Department, the Industrial Services of the provinces and cities directly under the Central Government shall have to guide and inspect the implementation of this Circular.

In the course of implementation, if any difficulty or problem arises, the organizations and individuals engaged in mineral activities shall have to promptly report it to the Ministry of Industry for consideration and settlement.

For the Minister of Industry

Vice Minister

GIA TAN DINH

GUIDANCE FOR THE ELABORATION OF PLANS ON MINERAL SURVEY OR PROSPECTION

(Appendix attached to Circular No.10/TT-DCKS of September 13, 1997 of the Ministry for Industry guiding the procedures for submitting mineral activity plans and reports on evaluation and ratification and the elaboration of mineral survey or prospection plans)

INTRODUCTION

- Grounds for the elaboration of the plan

- Objectives, tasks and minerals applied for survey and prospection

Chapter I

NATURAL GEOGRAPHICAL CHARACTERISTICS-HUMAN ECONOMY

- The geographical location, coordinates, area of survey or prospection

- Information on nature, human economy

- The history of geological and mineral study of the area to be surveyed or prospected.

Chapter II

GEOLOGICAL AND MINERAL CHARACTERISTICS OF THE AREA TO BE SURVEYED OR PROSPECTED

- Geological characteristics of the region: main features of the geological stratum, structure and magma of the target area.

- Mineral characteristics, including:

+ Indications, signs and premises related to minerals.

+ Mineral distribution in space, forms and sizes of ores and their material composition...

+ Preliminary evaluation of the mineral reserve.

Chapter III

PROSPECTION METHOD AND PROJECT VOLUMES

1. Grounds for the selection of survey or prospection method:

- Grounds for the selection of method (reasons for the objective, forms, origin and conditions for the formation of ores; material composition and extent of ore distribution, purposes and efficacy of the method or group of methods).

2. Method and volume of prospection:

- Geological method;

- Geo-chemical method;

- Geo-physical method;

- Land survey, including topographical and construction surveys (the ratio shall depend on the area and objectives);

- Drilling and digging;

- Hydrological geology and construction geology;

- Method of extracting, processing and analyzing samples, place where the samples shall be sent for analysis and place of internal and external examination;

- Environmental protection;

- Office work, elaboration of the report on survey or prospection results.

All forms of the above mentioned work must necessary be stated clearly as to their quantities and volumes and must be staggered according to the implementation periods and years. All construction structures must be indicated on maps of the project layout.

Chapter IV

PLANNED METHOD FOR THE CALCULATION OF THE MINERAL RESERVE

This chapter shall present the planned method and norms for the calculation of the mineral reserve on the basis of the planned use of data to be collected in the prospection process. On such basis to make a forecast of the mineral reserve and the expected mineral objectives to be achieved in the planned area.

Chapter V

ORGANIZATION OF IMPLEMENTATION

On the basis of the geological, economic-technical conditions and methods as well as the planned volume, the plan and tempo of execution of all forms of work in each period, according to each proper volume and order.

The construction design as well as the application of technical methods must be based on the standards, regulations and current economic and technical norms.

Chapter VI

ESTIMATE OF PROSPECTION COSTS

When making the estimate, besides its grounds and items, it is necessary to clearly state the potential sources of the investor and the potential financial joint ventures and cooperation so as to fully meet the quantitative and qualitative requirements of the plan.

The estimate must clearly state the unit prices to be applied; if adjustment is needed for any unit price, the grounds thereof must be indicated so as to determine the adjustment coefficient suitable to the actual production conditions, which, however, must be made on a legal basis and approved in writing by the investor.

CONCLUSION

- The expected results of geological prospection and economic efficiency.

- Other requests and proposals (if any).

APPENDICE

- A map (diagram) of the traffic.

- A geological map of the region, the map of minerals and maps of ores and ores' composition and the ratios.

- The diagram of the project layout and sample taking.

- The geological and mineral sections.

- Other relevant charts and tables.-